Illumina, a San Diego-based maker of gene-sequencing equipment, on Tuesday reported 9 per cent higher profit on a 10 percent increase in sales for the third quarter of 2016.
The company earned $129 million, or 87 cents per share, on revenue of $607 million in the quarter, compared to $118 million, or 79 cents per share, on revenue of $550 million in the same period a year ago.
The company reported cash flow from operations of $150 million and a gross margin of 70 percent in the quarter. Research and development expenses totaled $125.9 million, or 21 percent of revenue.
The company said earlier this month that growth in quarterly revenue would be slower than forecast because of a decline in purchases of high-throughput sequencing systems
“While sequencing sample volume growth remains robust, our lowered revenue outlook reflects our updated expectations for HiSeq 2500, HiSeq 4000 and HiSeq X instrument purchases, as well as HiSeq 2500 reagent sales,” said Francis deSouza, president and CEO, on Tuesday. “Over the last few weeks it has become clear that certain academic funding practices were modified in the third quarter, limiting our customers’ ability to make HiSeq X capital commitments.”
The company’s stock was down nearly 3 percent to $135.51 in after-hours trading on Wall Street.
Illumina sells a number of very high-throughput DNA-sequencing systems, the fastest of which can read up to 3 billion base pairs at a time.
